Mumbai: Eighty-five per cent of Indian businesses — the highest among all surveyed markets — view Saudi Arabia as an increasingly attractive destination for trade and investment amid global uncertainties, according to a report released on Thursday.
The HSBC report found that 78 per cent of Indian companies plan to boost their investments in Saudi Arabia over the next six months, marking the strongest commitment from any market outside the Middle East.
Indian business leaders are showing a clear intent to expand trade and investment with the Kingdom, aligning with Saudi Arabia’s Vision 2030, which aims to build a resilient, diversified economy with strong growth prospects.
“International businesses are showing rising confidence in Saudi Arabia’s economic transformation. The Kingdom is uniquely positioned to combine robust growth potential with long-term stability,” said Selim Kervanci, CEO for Middle East, North Africa and Türkiye (MENAT), HSBC Bank Middle East.
The survey covered 4,000 international business decision-makers with annual revenues between $50 million and $500 million, offering insights into evolving trade and investment trends between Saudi Arabia and eight major global markets.
India and Saudi Arabia have steadily strengthened their economic ties. India is now Saudi Arabia’s second-largest trading partner, while the Kingdom ranks as India’s fifth-largest. In FY 2024–25, bilateral trade reached $41.88 billion, with Indian exports at $11.76 billion and imports at $30.12 billion.
Indian respondents cited Saudi Arabia’s expanding economy (60 per cent), economic stability (56 per cent), and business-friendly policies (51 per cent) as the top reasons to engage with the Kingdom.
Ajay Sharma, Head of Banking at HSBC India, said the alignment between Saudi Arabia’s Vision 2030 and India’s Viksit Bharat agenda is creating new synergies for sustainable trade and investment growth.
Indian IT and tech firms are aiding Saudi Arabia’s digital transformation, while interest is rising across healthcare, logistics, mining and startups. However, businesses already operating in the Kingdom identified foreign ownership restrictions (35 per cent) and market competition (35 per cent) as the main challenges to expanding further.
